Considering making your first investment in ASX shares? Or maybe you’ve already dipped your toe in the water, and found the whole experience a little scary (or wildly fun)? It can be intimidating to expose your hard-earned money to the whims of the beast that is the stock market.
Here are 3 easy investments that you can comfortably (in my opinion) choose as your first (or second) foray into the world of investing.
Milton Corporation Limited (ASX: MLT)
Milton is what’s known as a listed investment company (LIC). This just means that it’s job as a company is to invest in other companies. So when you buy one share of Milton, you are buying a share of all the companies that Milton owns (84, by the last count). Milton is known as one of the ‘old guard’ LICs, which are known for their conservative and steady approach. Some of Milton’s top companies include Westpac Banking Corp (ASX: WBC) and Woolworths Group Ltd (ASX: WOW), which you might be familiar with already.
BetaShares Australian Sustainability Leaders ETF (ASX: FAIR)
FAIR is an exchange traded fund (ETF) and, like Milton, invests in a whole bunch of investments through one share. FAIR focuses on Australian companies that don’t have exposure to gambling, fossil fuels, tobacco, alcohol and other ethical concerns, making it a nice ‘feel-good’ investment. With 79 underlying investments, some of FAIR’s top holdings include Telstra Corporation Ltd (ASX: TLS) and Cochlear Ltd (ASX: COH). If you’re looking for a simple, market-wide investment with an ethical bent, look no further than FAIR.
Coles Group Ltd (ASX: COL)
Although Coles is obviously a more concentrated investment, I’ve included it because everyone will be familiar with that red ‘down-down’ hand. If you want to invest in individual shares, I think one of the most important things you need to do is understand the company very well, and Coles is a good candidate (it’s no ‘hot new’ tech disruptor, that’s for sure). Coles only joined the ASX last year but has already outlined its plans for the next few years, so if you’re thinking about making an individual stock pick, have a read of Coles’ plans and see what you think.
Getting started in shares can be a very scary process! But with practice and patience, you can really make it work for you for the rest of your life. I think any of these three stocks would be a good place to get started, with the first two picks being very easy, uncomplicated investments.
5 stocks under $5
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*Extreme Opportunities returns as of June 5th 2020
Sebastian Bowen owns shares of Telstra Limited. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Cochlear Ltd. The Motley Fool Australia owns shares of and has recommended Telstra Limited. The Motley Fool Australia has recommended Cochlear Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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